Industry Research : Poor Customer Service is Eroding Customer Loyalty to Retail Brands
2018 Top Ranking Performers Present:
New research commissioned by customer service specialists KANA Software, A Verint(R)Company (NASDAQ: VRNT), suggests poor customer service is eroding consumer loyalty and confidence in retail brands.
"The younger generation has higher expectations of digital channels, collaborative and social communications and asks ‘how hard can it be.’ They won’t take seriously an organisation that is unable to do the basics right, and these expectations are rising all the time"
Nearly one-third of U.K. consumers (30 percent) have become less loyal to retail brands in the past five years, according to a survey of 2,000 consumers carried out by Vision Critical on behalf of KANA. One-quarter of those customers identified poor service as the main reason for this decreased loyalty.
One major issue for customers was the number of times they had to repeat their complaint to different people within the same company. Almost half of respondents (48 percent) said they had to repeat information during their last communication with a retailer.
All age groups identified repetition as a problem; however, it occurs most frequently for customers under the age of 35—with one in 20 repeating themselves at least five times. Only 30 percent of these younger customers had their issue resolved after one interaction. By contrast, 64 percent of customers over the age of 65 did not have to repeat their complaint at all, feeling satisfied after first contact.
This apparent disparity between levels of service has the potential to drive younger consumers elsewhere. Of those who feel less loyal to retail brands, 37 percent of 18-to-24-year-olds cite service as the key factor versus just 20 percent of those aged 65 and older.
"By forcing consumers to repeat themselves, often several times over a prolonged period, organisations not only deliver inefficient service that costs them money—they seriously affect future consumer loyalty," says Steven Thurlow, head of worldwide product strategy for KANA. "The need for repetition shows not only poor management of customer data, channels and context, but more fundamentally a lack of ownership of the consumer’s problem and lack of appreciation for their effort levels."
"The younger generation has higher expectations of digital channels, collaborative and social communications and asks ‘how hard can it be.’ They won’t take seriously an organisation that is unable to do the basics right, and these expectations are rising all the time," Thurlow continues.
CONTACT CENTER & CUSTOMER ENGAGEMENT
BERLIN - ORLANDO - MACAO
FIND OUT MORE!
In the past six months, more than one-in-10 adults polled have used at least five different customer channels to contact a retailer. This research supports other studies from KANA showing that U.K. consumers regularly use multiple different channels of contact. Web-based chat, email and face-to-face in store came out as the most popular choices for customer engagement with preference varying between age groups.
"When you have an issue, you want to speak to someone who knows your back history and is able to take action on your behalf. Repetition causes frustration and makes customers feel devalued or, worse, completely ignored. Without a true sense that different channels of communication are linked, people feel that they are wasting their time and, ultimately, this leads to an erosion of loyalty in the retail brand," Thurlow adds.
2018 Top Ranking Performers Present:
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - Front Line Input
More Editorial From Verint
Published: Monday, July 7, 2014
Genesys® powers 25 billion of the world’s best customer experiences each year. Our success comes from connecting employee and customer conversations on any channel, every day. Over 10,000 companies in...
Convergys delivers consistent, quality customer experiences in 58 languages and from more than 150 locations around the globe. We partner with our clients to improve customer loyalty, reduce costs, an...
ConSol Limited is a provider of Contact Centre services, Customer Management Solutions and Business Process Outsourcing (BPO) to the Information Communication Industry in West Africa. ConSol bridges t...
Salesforce.com delivers software-as-service offering a family of on demand solutions for integrated sales force automation, campaign management, customer service and support, and document and file man...